• CBSL, Finance Ministry urged to verify last-minute approvals
• Bulk imports could bypass new restrictions for years
• Brand-new agents accused of gaining unfair advantage
• Claim this is a serious injustice to the economy

In the wake of allegations that two companies had opened about 4,000 letters of credit (LCs) shortly before the Government imposed a 50 per cent surcharge on vehicle imports, the Vehicle Importers’ Association (VIA) called on the authorities including the Finance Ministry and the Central Bank of Sri Lanka (CBSL) to investigate the matter and take appropriate action.

Speaking to The Daily Morning yesterday (21), the Association's Vice President and Media Spokesperson Arosha Rodrigo said that reports circulating in the media claimed that certain recently launched vehicle agencies had opened large volumes of LCs during the final week before the surcharge came into effect on 16 May. He said that they were unable to independently confirm the allegations, but stressed that the matter should be thoroughly examined by the authorities.

"The Government’s intention in imposing the surcharge was to limit vehicle imports amid the country’s foreign exchange pressures. However, if bulk LCs had been opened before the surcharge took effect, certain agents will be able to continue importing vehicles for the next several years despite the new restrictions."

Speaking further, he explained that unlike used vehicle importers, who generally open LCs for vehicles that have already been manufactured and possess chassis numbers, brand-new vehicle agents are able to open bulk LCs for thousands of vehicles that have not even been manufactured.

"We urge the Government to obtain and examine the data relating to all LCs opened during the relevant week. The CBSL is able to access and verify such information. If one section alone has gained a massive advantage through this process, it is a serious injustice given the country’s present economic situation. In parallel, steps should also be taken to prevent the opening of bulk LCs for vehicles that have not yet been manufactured."

Attempts to contact the Deputy Finance Minister Dr. Anil Jayantha proved futile.

The remarks came against the backdrop of allegations raised in Parliament by Opposition Parliamentarian S.M. Marikkar, who claimed that two companies supportive of the National People’s Power Government had opened LCs to import around 4,000 vehicles on 15 May, one day before the surcharge was imposed. According to him, one company had opened LCs for 3,500 vehicles while another had opened LCs for 500 vehicles.

Responding to the allegation in Parliament early this week, Jayantha rejected the claims, and said that official records showed that only 1,782 vehicles had been imported on 15 May. He said that there had been no leak of insider information regarding the surcharge and accused Opposition MPs of attempting to mislead the public.